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Gold/Mining/Energy : Net Shepherd Inc. (WEB) on ASE -- Ignore unavailable to you. Want to Upgrade?

To: Crazy Canuck who wrote (1097)	6/1/2000 7:13:00 PM
From: Condor	Respond to of 1252

I would have to conclude the GE contract is a major coup. It would certainly suggest that Answers.com is on the cusp on some impressive further opportunities. Congrats to you longs. I suspect that by Christmas these share prices will be long, long behind you (and me too if I'm smart enough to get my butt in gear here). C

To: Crazy Canuck who wrote (1097)	6/2/2000 11:24:00 AM
From: Denise D	Read Replies (1) \| Respond to of 1252

The point is penetration of GE... ...and it's impact on Net Shepherd could be staggering. As I understand it, GE either owns or controls 1500 companies under its umbrella. GE Plastics, one of those, has signed what can only be guessed is a multi-million dollar deal. (Wouldn't your average mind surmise that a mere $1MM deal (a) wouldn't have much competitive value to not disclose; and (b) wouldn't likely be fought over by the likes of AskJeeves?) There is something going on here that seems to be alluded to, but nobody (I think) has said outright: 1. Net Shepherd has been doing beta testing since earlier this year (so it works), and GE Plastics ($112 Billion) signed it. 2. GE controls or owns 1500 companies, and is committed to customer service in each and every one of them. As CC has referred to: "ensure that every GE business has a Customer Web Center offering the highest quality service, sales and support online...", a part of their e-Business strategic direction for 2000. 3. From the NR: "Under a separate Master Service Agreement that was also signed, Answers.com will have an opportunity to work with other GE divisions." Here's my reasoning: Conservatively, suppose Net Shepherd gets 20% penetration of those 1500 companies. Also conservatively, let's assume they sign a mere 10% of those deals in 2000. ... 1500 x 20% x 10% = 30 Suppose the deal is worth (at minimum) US$5MM (chump change to US$112 Billion). ... 30 x US$5MM = US$150MM (C$225MM) Net Shepherd currently trades at $3 and their revenue (1999) is expected to be "at about last year's figure" of $4.5MM. Even at half if the deal is over 2 years (or third for three years, etc) of C$225MM, it is staggering what kind of impact to share price that kind of top-line revenue could have. Any input on the above calculations? Denise.